W.P. Carey Stock (NYSE:WPC), Trade Ideas

W.P. Carey

W.P. Carey Inc is a real estate investment trust principally involved in the ownership of properties located in the U.S., Western Europe, and Northern Europe. W.P. Carey organizes its operations into Real Estate and Investment Management segments. The vast majority of the company's income is derived from its Real Estate division in the form of lease revenue from long-term agreements with companies. W.P. Carey's real estate portfolio is primarily comprised of single-tenant office, industrial, warehouse, and retail facilities located around the world. most of the company's revenue comes from properties in the USA. The company's Investment Management unit generates revenue from providing real estate advisory and portfolio management services to other REITs.

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W.P. Carey Inc

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Barclays initiates coverage on W.P. Carey (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WPC#NYSE">WPC</a>) with a Equal-Weight rating and announces Price Target of $55.

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Analyst Ratings

Barclays Initiates Coverage On W.P. Carey with Equal-Weight Rating, Announces Price Target of $55

The dividend is payable on&nbsp;April 15, 2024&nbsp;to stockholders of record as of&nbsp;March 28, 2024. The dividend is equivalent to an annualized dividend rate of&nbsp;$3.46&nbsp;per share

Dividends

W. P. Carey Increases Quarterly Dividend From $0.86 To $0.865 Per Share

Scotiabank analyst Nicholas Yulico maintains W.P. Carey (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WPC#NYSE">WPC</a>) with a Sector Perform and lowers the price target from $62 to $60.

Scotiabank Maintains Sector Perform on W.P. Carey, Lowers Price Target to $60

W.P. Carey's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WPC#NYSE">WPC</a>) short percent of float has fallen 4.07% since its last report. The company recently reported that it has 8.38 million shares sold short, which is 4.48% of all regular shares that are available for trading. Based on its trading volume, it would take traders 6.08 days to cover their short positions on average.
<h3>Why Short Interest Matters</h3>
Short interest is the number of shares that have been sold short but have not yet been covered or closed out. <a href="https://www.benzinga.com/money/how-to-short-a-stock/">Short selling</a> is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.
Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.
See Also: <a href="https://www.benzinga.com/short-interest">List of the most shorted stocks</a>
<h3>W.P. Carey Short Interest Graph (3 Months)</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1709564412_0.png" alt="short_fig" />
As you can see from the chart above the percentage of shares that are sold short for W.P. Carey has declined since its last report. This does not mean that the stock is going to rise in the near-term but traders should be aware that less shares are being shorted.
<h3>Comparing W.P. Carey's Short Interest Against Its Peers</h3>
Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.
According to <a href="https://pro.benzinga.com/">Benzinga Pro</a>, W.P. Carey's peer group average for short interest as a percentage of float is 2.47%, which means the company has more short interest than most of its peers.
Did you know that increasing short interest can actually be bullish for a stock? <a href="https://www.benzinga.com/money/how-to-make-money-on-a-short-squeeze/">This post by Benzinga Money explains how you can profit from it.</a>
This article was generated by Benzinga's automated content engine and was reviewed by an editor.

Short Sellers

Short Ideas

(WPC) - Analyzing W.P. Carey's Short Interest

Real estate investment trusts (REITs) have generally performed well in recent fourth-quarter earnings reports, often matching or beating analyst estimates in funds from operations (FFO) and revenue.
But some REITs have underperformed expectations, either in fourth-quarter metrics and/or full-year 2024 forward guidance. Share prices usually fall when this happens, and often analysts will downgrade the stocks as well, lowering prices even further.
Take a look at four REITs that disappointed Wall Street recently with fourth-quarter operating results that failed to meet expectations and have received analyst downgrades. All four have suffered share price losses as a result.
Hudson Pacific Properties Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HPP#NYSE">HPP</a>) is a Los Angeles-based office REIT with 48 office properties and six motion picture studios with an emphasis on centers of innovation for media and tech companies in California, Washington state and Vancouver, British Columbia. Its end-of-fourth-quarter office occupancy rate was 80.8%, down from 88% at the end of 2022.
&nbsp;On Feb. 12, Hudson Pacific Properties reported its fourth-quarter operating results. FFO of $0.14 missed the consensus estimate of $0.15 and was well below FFO in the fourth quarter of 2022 of $0.49 per share. FFO has fallen in five consecutive quarters since then. Revenue of $223.42 million missed the consensus estimate of $223.93 million and was 17.2% lower than revenue of $269.93 million in the fourth quarter of 2022.
On Feb. 20, Wedbush Securities analyst Richard Anderson downgraded Hudson Pacific Properties from Outperform to Neutral and lowered the price target from $11 to $7.50.
Since Feb. 12, the share price has fallen from about 11%, from $8.17 to $7.25.
Healthcare Realty Trust Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HR#NYSE">HR</a>) is a Nashville, Tennessee-based healthcare REIT with 688 properties covering 40.3 million square feet across 35 states. It was established in 1992 with 21 facilities and has evolved into a delivery model in which 72% of its properties are multitenant medical outpatient service buildings on the campus of hospitals or other types of healthcare facilities. Its third-quarter occupancy rate was 85.2%.
In 2022, Healthcare Realty merged with Healthcare Trust of America in an $18 billion deal and became Healthcare Realty Trust. The top locations of its properties include Dallas, Seattle and Houston, Texas.
On Feb. 16, Healthcare Realty Trust reported its fourth-quarter operating results. FFO of $0.39 was in line with estimates but fell from $0.42 in the same period last year. Revenue of $330.44 million missed the estimates of $334.6 million and was below revenue of $338.06 in the fourth quarter of 2022.
Additionally, the full-year 2024 FFO of $1.52-$1.58 per share, with a midpoint of $1.55 was below analysts' estimates of $1.57.&nbsp;
On Feb. 20, Wedbush analyst Richard Anderson downgraded Healthcare Realty Trust from Outperform to Neutral and lowered the price target from $19 to $15.
Healthcare Realty shares have fallen from $15.59 preearnings announcement to a recent closing price of $14.36.
Digital Realty Trust Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DLR#NYSE">DLR</a>) is an Austin, Texas-based Data Center REIT with over 218,000 cross-connects in 300 facilities across 23 countries. It has over 5,000 customers, including stalwart tech companies such as Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>), Oracle Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ORCL#NASDAQ">ORCL</a>) and IBM (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IBM#NYSE">IBM</a>).
On Feb. 15, Digital Realty Trust reported fourth-quarter 2023 operating results. FFO of $1.63 per share missed the consensus estimate of $1.64 per share and was below FFO of $1.65 in the fourth quarter of 2022. One positive was that revenue of $1.4 billion beat the estimate of $1.39 billion and was 13.54% better than revenue of $1.23 billion in the fourth quarter of 2022.
Full-year 2024 guidance of core FFO of $6.60-$6.75 was above 2023's $6.59 but missed analysts' estimates of $6.83. Full-year 2024 revenue of $5.5 billion- $5.65 billion also missed the Street's expectations of $5.76 billion.
The following day, Scotiabank analyst Maher Yaghi downgraded Digital Realty Trust from Sector Outperform to Sector Perform.
Digital Realty was up 22% over the past six months, but following the report and downgrade, it sold off over 8% from $148.61 to $136.22, with an intraday low of $134.75.
WP Carey Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WPC#NYSE">WPC</a>) is a New York City-based diversified net-lease REIT, whose single-tenant properties include industrial, warehouse, retail and self-storage units. It was founded in 1973 and recently celebrated its 50th year of investing in properties.&nbsp;&nbsp;
WP Carey has 1,424 net leased properties with approximately 173 million square feet across 26 countries. Its portfolio includes 336 tenants from over 30 industries and an excellent occupancy rate of 98.1%. However, that's down from 99.0% in 2023.
On Feb, 9, WP Carey reported its fourth-quarter operating results. It missed the analysts' estimates for both adjusted FFO (AFFO) and revenue. AFFO of $1.19 per share and revenue of $410.38 million fell short of the expectations for $1.21 per share and $422.12 million. AFFO was also below $1.29 in the same period a year ago, while revenue increased from $402.6 million in the fourth quarter of 2022.
WP Carey also announced its full-year 2024 AFFO per share of $4.65-$4.75, with a midpoint of $4.70. The Street was expecting $4.72.
After the results were announced, the stock sold off, with the share price falling from the preannouncement closing of $61.35 to a low of $54.72 within three days. The price then rebounded to close at $57.40 on Feb. 16.
On Feb. 12, Raymond James analyst RJ Milligan downgraded WP Carey from Outperform to Market Perform.
Many investors lost faith in WP Carey after it announced a spinoff and sale of its office properties as well as a shocking dividend cut in September. Shares have fallen almost 30% since the high of $81.54 in July 2022.
It could be a while before these four REITs make any substantial gains.
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W.P. Carey (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WPC#NYSE">WPC</a>) has been analyzed by 4 analysts in the last three months, revealing a diverse range of perspectives from bullish to bearish.
The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.
<table>
<thead>
<tr>
<th></th>
<th style="text-align: right;">Bullish</th>
<th style="text-align: right;">Somewhat Bullish</th>
<th style="text-align: right;">Indifferent</th>
<th style="text-align: right;">Somewhat Bearish</th>
<th style="text-align: right;">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">3</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>Last 30D</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
</tbody>
</table>
Analysts have recently evaluated W.P. Carey and provided 12-month price targets. The average target is $65.5, accompanied by a high estimate of $68.00 and a low estimate of $61.00. A decline of 0.38% from the prior average price target is evident in the current average. 
<img src="https://www.benzinga.com/files/images/story/2024/1708452036_0.png" alt="price target chart" />
<h2>Understanding Analyst Ratings: A Comprehensive Breakdown</h2>
The analysis of recent analyst actions sheds light on the perception of W.P. Carey by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>Todd Stender</td>
<td>Wells Fargo</td>
<td>Lowers</td>
<td>Equal-Weight</td>
<td>$61.00</td>
<td>$66.00</td>
</tr>
<tr>
<td>Brad Heffern</td>
<td>RBC Capital</td>
<td>Lowers</td>
<td>Outperform</td>
<td>$65.00</td>
<td>$68.00</td>
</tr>
<tr>
<td>Brad Heffern</td>
<td>RBC Capital</td>
<td>Raises</td>
<td>Outperform</td>
<td>$68.00</td>
<td>$66.00</td>
</tr>
<tr>
<td>RJ Milligan</td>
<td>Raymond James</td>
<td>Raises</td>
<td>Outperform</td>
<td>$68.00</td>
<td>$63.00</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li>Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to W.P. Carey. This insight gives a snapshot of analysts' perspectives on the current state of the company.</li>
<li>Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of W.P. Carey compared to the broader market.</li>
<li>Price Targets: Delving into movements, analysts provide estimates for the future value of W.P. Carey's stock. This analysis reveals shifts in analysts' expectations over time.</li>
</ul>
Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into W.P. Carey's market standing. Stay informed and make well-considered decisions with our Ratings Table.
<a href="https://www.benzinga.com/quote/WPC/analyst-ratings?utm_source=Benzinga Insights">Stay up to date on W.P. Carey analyst ratings.</a>
<h2>Discovering W.P. Carey: A Closer Look</h2>
W.P. Carey Inc is a real estate investment trust principally involved in the ownership of properties located in the U.S., Western Europe, and Northern Europe. W.P. Carey organizes its operations into Real Estate and Investment Management segments. The vast majority of the company's income is derived from its Real Estate division in the form of lease revenue from long-term agreements with companies. W.P. Carey's real estate portfolio is primarily comprised of single-tenant office, industrial, warehouse, and retail facilities located around the world. most of the company's revenue comes from properties in the USA. The company's Investment Management unit generates revenue from providing real estate advisory and portfolio management services to other REITs.
<h3>W.P. Carey: Delving into Financials</h3>
Market Capitalization: Boasting an elevated market capitalization, the company surpasses industry averages. This signals substantial size and strong market recognition.
Revenue Growth: W.P. Carey's revenue growth over a period of 3 months has been noteworthy. As of 31 December, 2023, the company achieved a revenue growth rate of approximately 2.44%. This indicates a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Real Estate sector.
Net Margin: W.P. Carey's net margin is impressive, surpassing industry averages. With a net margin of 34.99%, the company demonstrates strong profitability and effective cost management.
Return on Equity (ROE): W.P. Carey's ROE excels beyond industry benchmarks, reaching 1.62%. This signifies robust financial management and efficient use of shareholder equity capital.
Return on Assets (ROA): W.P. Carey's ROA excels beyond industry benchmarks, reaching 0.79%. This signifies efficient management of assets and strong financial health.
Debt Management: With a below-average debt-to-equity ratio of 0.94, W.P. Carey adopts a prudent financial strategy, indicating a balanced approach to debt management.
<h2>Understanding the Relevance of Analyst Ratings</h2>
Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.
Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Expert Ratings For W.P. Carey

The most oversold stocks in the real estate sector presents an opportunity to buy into undervalued companies.
The RSI is a momentum indicator, which compares a stock&#39;s strength on days when prices go up to its strength on days when prices go down. When compared to a stock&#39;s price action, it can give traders a better sense of how a stock may perform in the short term. An asset is typically considered oversold when the <a href="https://www.benzinga.com/topic/rsi"> RSI is below 30</a>, according to <a href="https://pro.benzinga.com/"> Benzinga Pro</a>.
Here&rsquo;s the latest list of major oversold players in this sector, having an RSI near or below 30.
<h3>W. P. Carey Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/wpc#NYSE">WPC</a>)</h3>
<ul>
<li>On Feb. 9, W.P. Carey reported worse-than-expected fourth-quarter results. W.P. Carey CEO Jason Fox said,&ldquo;Looking ahead, we view 2024 as a transitional year, establishing a new baseline from which to grow AFFO&hellip;We&rsquo;ve raised our expectations for 2024 investment volume and we&rsquo;re very well-positioned to execute &mdash; with exceptionally strong liquidity and a lower cost of capital &mdash; in an improving investment environment.&rdquo; The company&rsquo;s stock fell around 17% over the past month and has a <a href="https://www.benzinga.com/quote/WPC">52-week low of $50.30 </a>.</li>
<li>RSI Value: 28.81</li>
<li>WPC Price Action: Shares of W.P. Carey fell 0.1% to close at $55.83 on Wednesday.</li>
</ul>
<h3>SBA Communications Corporation (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/sbac#NASDAQ">SBAC</a>)</h3>
<ul>
<li>On Nov. 2, SBA Communications posted third-quarter AFFO per share of $3.34. The company is expected to release its fourth quarter results on Feb. 26, 2024 after market close. The company&rsquo;s stock fell around 12% over the past month. It <a href="https://www.benzinga.com/quote/SBAC"> has a 52-week low </a> of $185.23.</li>
<li>RSI Value: 27.79</li>
<li>SBAC Price Action: Shares of SBA Communications rose 0.1% to close at $209.07 on Wednesday.</li>
</ul>
<h3>Healthpeak Properties, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/peak#NYSE">PEAK</a>)</h3>
<ul>
<li>On Feb. 8, Healthpeak Properties posted upbeat fourth-quarter results. The company&rsquo;s stock fell around 19% over the past month and has a 52-week <a href="https://www.benzinga.com/quote/PEAK"> low of $15.24.</a></li>
<li>RSI Value: 29.73</li>
<li>PEAK Price Action: Shares of Healthpeak Properties gained 0.5% to close at $16.86 on Wednesday.</li>
</ul>
<h3>EPR Properties (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/epr#NYSE">EPR</a>)</h3>
<ul>
<li>EPR is expected to release its fourth quarter 2023 financial results after the closing bell on Feb. 28, 2024. The company&rsquo;s shares lost around 11% over the past month. The company&rsquo;s 52-week low is $33.92.</li>
<li>RSI Value: 24.99</li>
<li>EPR Price Action: Shares of EPR Properties rose 0.7% to close at $41.90 on Wednesday.</li>
</ul>
&nbsp;
Read More: <a href="https://www.benzinga.com/news/earnings/24/02/37149861/investor-sentiment-improves-dow-jumps-over-150-points"> Investor Sentiment Improves; Dow Jumps Over 150 Points </a>

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RBC Capital analyst Brad Heffern maintains W.P. Carey (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WPC#NYSE">WPC</a>) with a Outperform and lowers the price target from $68 to $65.

RBC Capital Maintains Outperform on W.P. Carey, Lowers Price Target to $65

W.P. Carey Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WPC#NYSE">WPC</a>), with a dividend yield of 6%, is uniquely set to ride the wave of growing demand for versatile commercial spaces, a trend that&#8217;s been supercharged by the rise of remote work and the e-commerce boom. The company&#8217;s engagement in providing long-term net lease solutions across a variety of sectors, including office, industrial, warehouse, and retail properties, positions it to capitalize on the shifting dynamics of the workspace and retail environments, accentuated by companies adapting to post-pandemic operational models.
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As work norms and consumer behaviors continue to transform, the need for adaptable and strategically located commercial properties intensifies, placing W.P. Carey at the center of this dynamic market. The surge in e-commerce, accelerated by giants like Amazon (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>), and the rise of hybrid work models necessitate versatile commercial real estate solutions. W.P. Carey, known for its diversified portfolio and investment in high-quality properties, aligns perfectly with these trends. The company&#8217;s broad spectrum of assets, from industrial distribution centers to modern office spaces, is crucial for businesses looking to optimize their operations in line with contemporary work patterns and consumer demands, making W.P. Carey a key player in the real estate evolution.
Investing in W.P. Carey offers investors a prime avenue to benefit from the shifts in commercial real estate necessitated by the latest work and retail trends. The company&#8217;s properties serve a wide range of industries that are recalibrating their physical space requirements to better align with the new norms, from tech firms to consumer goods companies, all of which seek out the flexible and strategic real estate solutions that W.P. Carey provides. This broad applicability of W.P. Carey&#8217;s offerings underlines its growth potential and its allure as an investment in a future shaped by remote work and digital commerce. With a dividend announcement of $1.07 per share in the last quarter of 2023, bringing the year&#8217;s total payouts to $4.28, it&#8217;s clear they&#8217;re on a promising path.
W.P. Carey&#8217;s investment transcends typical real estate ventures, presenting a strategic stake in properties that underpin key societal shifts towards remote work and online shopping. As these trends continue to unfold, propelling the need for flexible and multifunctional spaces, W.P. Carey&#8217;s offerings become ever more vital, potentially enhancing its dividend prospects and affirming its status as a compelling investment for those aiming to tap into the future of commercial real estate.
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<li>Collecting passive income from real estate just got a whole lot simpler. A new<a href="https://www.benzinga.com/money/dara-khosrowshahi-backed-startup-lets-you-become-a-landlord-with-100"> real estate fund backed by Dara Khosrowshahi</a> gives you instant access to a diversified portfolio of rental properties, and you only need $100 to get started.</li>
</ul>
Image credit: Shutterstock

Seeking Exposure to Amazon's Growth? Here's How to Use This REIT Hack

Raymond James analyst RJ Milligan downgrades W.P. Carey (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WPC#NYSE">WPC</a>) from Outperform to Market Perform.

Downgrades

Raymond James Downgrades W.P. Carey to Market Perform

W.P. Carey Inc&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WPC#NYSE">WPC</a>) shares are trading lower after the company reported&nbsp;<a target="_blank" href="https://www.benzinga.com/pressreleases/24/02/n37031682/w-p-carey-announces-fourth-quarter-and-full-year-2023-financial-results" rel="noreferrer noopener">fourth-quarter FY23 earnings</a>.
Revenue (including reimbursable costs) increased 2.4% Y/Y to $412.4 million. Real Estate revenues (including reimbursable costs) rose 2.1% Y/Y to $410.4 million, missing the consensus of $422.12 million.&nbsp;
Lease revenues decreased Y/Y owing to the reclassifications of lease revenues related to the U-Haul and State of Andalusia portfolios and the spin-off of 59 office properties with ABR totaling $145 million into Net Lease Office Properties (NLOP) and creating a&nbsp;<a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/23/09/34918187/why-w-p-carey-shares-are-falling-today" rel="noreferrer noopener">separate publicly-traded REIT</a>.
Adjusted funds from operations (AFFO) per share fell 7.8% Y/Y to $1.19, <a href="https://www.benzinga.com/calendars/earnings">missing the consensus of $1.21.</a>
The company witnessed an investment volume of $345.6 million in the quarter and $1.3 billion in the year.
As of December 31, 2023, the net lease portfolio comprised 1,424 properties, with 173 million square feet leased to 336 tenants, with a weighted-average lease term of 11.7 years and an occupancy rate of 98.1%.&nbsp;
As of December 31, cash and cash equivalents stood at $633.9 million.&nbsp;&nbsp;
The company declared a quarterly dividend per share of $0.860 in the prior quarter, equivalent to an annualized dividend of $3.44. 
Outlook: WPC expects AFFO per share for FY24 of $4.65-$4.75 (estimate $4.70), with an investment volume of $1.5 billion-$2.0 billion and disposition volume of<a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener">&nbsp;$1.2 billion-$1.4 billion.</a>
W.P. Carey CEO Jason Fox said,&nbsp;&#8220;Looking ahead, we view 2024 as a transitional year, establishing a new baseline from which to grow AFFO&#8230;We&#8217;ve raised our expectations for 2024 investment volume and we&#8217;re very well-positioned to execute — with exceptionally strong liquidity and a lower cost of capital — in an improving investment environment.&#8221;
Price Action: WPC shares are down 7.29% at $56.88 on the last check Friday.

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Why Commercial Real Estate Company W.P. Carey Shares Are Down Today

W.P. Carey shares are trading lower after the company reported worse-than-expected Q4 results.

W. P. Carey Expects To Report 2024 AFFO Per Share Of $4.65-$4.75, Est $4.70

W.P. Carey (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WPC#NYSE">WPC</a>) reported quarterly AFFO&nbsp;of $1.19 per share which missed the analyst consensus estimate of $1.21 by 1.65 percent. This is a 7.75 percent decrease over AFFO&nbsp;of $1.29 per share from the same period last year. The company reported quarterly sales of $410.38 million which missed the analyst consensus estimate of $422.12 million by 2.78 percent. This is a 2.05 percent increase over sales of $402.14 million the same period last year.

W.P. Carey Q4 AFFO Per Share $1.19 Misses $1.21 Estimate, Sales $410.38M Miss $422.12M Estimate

<h3>Companies Reporting Before The Bell</h3>
&bull; TELUS (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TU#NYSE">TU</a>) is expected to report quarterly earnings at $0.23 per share on revenue of $5.24 billion.
&bull; Canopy Gwth (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CGC#NASDAQ">CGC</a>) is likely to report quarterly loss at $0.37 per share on revenue of $55.44 million.
&bull; Fortis (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FTS#NYSE">FTS</a>) is expected to report quarterly earnings at $0.53 per share on revenue of $2.39 billion.
&bull; AT&amp;T (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/T#NYSE">T</a>) is expected to report quarterly earnings at $0.23 per share on revenue of $5.25 billion.
&bull; Enbridge (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ENB#NYSE">ENB</a>) is expected to report quarterly earnings at $0.50 per share on revenue of $9.88 billion.
&bull; TELUS Intl (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TIXT#NYSE">TIXT</a>) is projected to report quarterly earnings at $0.35 per share on revenue of $932.03 million.
&bull; Listed Funds Trust Roundhill Cannabis ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/WEED#BATS">WEED</a>) is likely to report quarterly loss at $0.49 per share on revenue of $74.78 million.
&bull; Motorcar Parts of America (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MPAA#NASDAQ">MPAA</a>) is likely to report quarterly earnings at $0.08 per share on revenue of $182.20 million.
&bull; W.P. Carey (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WPC#NYSE">WPC</a>) is expected to report earnings for its fourth quarter.
&bull; Construction Partners (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ROAD#NASDAQ">ROAD</a>) is estimated to report quarterly earnings at $0.13 per share on revenue of $394.48 million.
&bull; Plains GP Holdings (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PAGP#NASDAQ">PAGP</a>) is estimated to report quarterly earnings at $0.35 per share on revenue of $11.91 billion.
&bull; Mr. Cooper Gr (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/COOP#NASDAQ">COOP</a>) is expected to report quarterly earnings at $1.33 per share on revenue of $416.70 million.
&bull; PepsiCo (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PEP#NASDAQ">PEP</a>) is likely to report quarterly earnings at $1.72 per share on revenue of $28.40 billion.
&bull; MISTRAS Group (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MG#NYSE">MG</a>) is expected to report quarterly earnings at $1.99 per share on revenue of $13.97 billion.
&bull; Magna International (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MGA#NYSE">MGA</a>) is projected to report quarterly earnings at $1.48 per share on revenue of $10.41 billion.
&bull; Blue Owl Cap (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OWL#NYSE">OWL</a>) is estimated to report quarterly earnings at $0.17 per share on revenue of $428.71 million.
&bull; Catalent (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CTLT#NYSE">CTLT</a>) is likely to report quarterly loss at $0.02 per share on revenue of $1.01 billion.
&bull; Embecta (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EMBC#NASDAQ">EMBC</a>) is likely to report quarterly earnings at $0.45 per share on revenue of $264.91 million.
&bull; Plains All American (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PAA#NASDAQ">PAA</a>) is estimated to report quarterly earnings at $0.36 per share on revenue of $12.64 billion.
&bull; AMC Networks (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMCX#NASDAQ">AMCX</a>) is projected to report quarterly earnings at $0.89 per share on revenue of $676.01 million.
&bull; Newell Brands (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NWL#NASDAQ">NWL</a>) is estimated to report quarterly earnings at $0.17 per share on revenue of $1.98 billion.
&bull; Essent Group (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ESNT#NYSE">ESNT</a>) is expected to report quarterly earnings at $1.59 per share on revenue of $286.18 million.
&bull; Proto Labs (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PRLB#NYSE">PRLB</a>) is likely to report quarterly earnings at $0.30 per share on revenue of $122.72 million.
<h3>Companies Reporting After The Bell</h3>
&bull; Amtech Systems (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ASYS#NASDAQ">ASYS</a>) is projected to report earnings for its first quarter.
This article was generated by Benzinga&#39;s automated content engine and reviewed by an editor.

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Earnings Scheduled For February 9, 2024

For an income investor, experiencing the overnight announcement of a severe dividend cut on one of your stocks can be particularly distressing. Not only does it result in the loss of expected income, but the stock may be trounced as investors quickly head for the exits at the opening bell.
This week, an office real estate investment trust (<a href="https://www.benzinga.com/real-estate/reit">REIT</a>) with a checkered dividend history served as a harsh reminder of the risks associated with yield traps, as a 16% yield evaporated overnight following a bleak company announcement. Take a look.
Office Properties Income Trust (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/OPI#NASDAQ">OPI</a>) is a Newton, Massachusetts-based office REIT with 154 properties covering 20.7 million square feet. As of the third quarter, its occupancy rate was 89.9%. Office Properties is externally managed by the RMR Group (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RMR#NASDAQ">RMR</a>).
In September, after a great deal of opposition from shareholders, Office Properties Income Trust agreed to terminate its proposed merger from April with Diversified Healthcare Trust (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/DHC#NASDAQ">DHC</a>), another REIT managed by the RMR Group. That announcement, along with the Federal Reserve's pause on interest rate hikes, helped propel Office Properties higher throughout the rest of 2023. Office Properties was one of the top five REITs in December with a 31.18% gain.
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<li>Passive income investments are one of the most trusted methods for riding out a recession, so it's no surprise that people are turning to <a href="https://www.benzinga.com/real-estate/23/05/32554601/want-to-grow-your-wealth-passively-these-high-yield-real-estate-notes-might-be-your-holy-grail">high-yield real estate notes that pay a fixed 7.5% to 9%.</a></li>
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On Oct. 30, Office Properties Income Trust announced its third-quarter operating results. Funds from operations (FFO) of $1.02 beat the estimates of $0.99 but declined from FFO of $1.11 in the third quarter of 2022. Revenue of $133.36 million beat the estimates of $132.74 million but was below revenue of $137.68 million in the third quarter of 2022.&nbsp;
The day after the earnings announcement, B. Riley Securities maintained a Buy rating on Office Properties but lowered the price target from $17 to $13.50.
As January began, former President and CEO Christopher Bilotto was moved from Office Properties to become president and CEO of Diversified Healthcare. Yael Duffy, who was a senior vice president of RMR Group and also the president and chief operating officer of Industrial Logistics Properties Trust (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ILPT#NASDAQ">ILPT</a>), took over as president and COO of Office Properties Trust.
For Duffy, the timing of her new tenure could not have been worse. On Jan. 11, Office Properties Trust announced its board of trustees voted to reduce the regular quarterly dividend from $0.25 to $0.01 per share. The $0.01 per share distribution will be paid on Feb. 15 to shareholders of record as of the close of business on Jan. 22.
This was not the first time Office Properties slashed its dividend. In January 2019, the dividend was cut from $1.72 per share to $0.55 per share. In April 2023, the $0.55 dividend was cut to $0.25 per share.&nbsp;&nbsp;
Why did the board cut the dividend to the bone this time?
&#8220;Given the deterioration in market conditions since we last addressed our dividend rate in the first half of 2023, we believe it is prudent to further reduce the dividend to increase our liquidity and financial flexibility when addressing future leasing costs, capital expenditures and debt maturities," Duffy said. "This new dividend rate will immediately increase OPI&#8217;s liquidity by approximately $47 million per year as well as increase liquidity by approximately $105 million per year as compared to the dividend rate paid in Q1 2023.&#8221;
While the last part of that statement sounded positive, Wall Street wasn't having any of it. The announcement sent Office Properties' shares tumbling more than 33% lower soon after the opening bell. By 10 a.m., it was down over 38%.
The larger question now is- will other office REITs be likely to follow suit and cut dividends for similar reasons?&nbsp; SL Green Realty Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SLG#NYSE">SLG</a>) has cut its monthly dividend by 7.7%, from $0.2708 to $0.25 per share in December. WP Carey Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WPC#NYSE">WPC</a>) recently sold most of its office properties and spun off the rest into Net Lease Office Properties Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NLOP#NYSE">NLOP</a>) but at the same time cut its quarterly dividend 19.7% from $1.07 per share to $0.86 per share.
Brandywine Realty Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BDN#NYSE">BDN</a>), with its 10.79% dividend yield, appears to be another office REIT that could reduce its dividend this year. Although it cut the quarterly dividend last October from $0.19 per share to $0.15 per share, and despite a payout ratio of only 51%, it still has a meaningful amount of debt to resolve. Creative Media &amp; Community Trust Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CMCT#NYSE">CMCT</a>) has an annual dividend yield of 9.29%, and last quarter it reported FFO of negative $0.33. These and other office REIT dividends could be at further risk.
This week, Moody's Analytics published new data, showing that 20% of U.S. offices are sitting empty, the highest vacancy rate seen since 1979. In SL Green's most recent quarterly report, its occupancy rate was slightly higher than the previous quarter but was down from 92.8% to 89.9% year over year. Vornado Realty Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VNO#NYSE">VNO</a>) reported a 3% decrease in occupancy between the third quarter of 2022 and the third quarter of 2023. Its short interest is now up to 10.32%. Other office REITs have reported similar occupancy declines.
With office REITs set to report fourth-quarter operating results within the next two or three weeks, further vacancy increases will likely be reported. Office REITs have had remarkable runs in share price since the beginning of November, but now could be the time for investors with profits to consider placing protective stop losses or writing covered calls on their profitable positions.
Weekly REIT Report: REITs are one of the most misunderstood investment options, making it difficult for investors to spot incredible opportunities until it's too late. Benzinga's in-house real estate research team has been working hard to identify the greatest opportunities in today's market, which you can gain access to for free by signing up for the <a href="https://www.benzinga.com/money/reit-newsletter">Weekly REIT Report.</a>
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<li>Collecting passive income from real estate just got a whole lot simpler. A new<a href="https://www.benzinga.com/money/bezos-landlord-100-dollars"> real estate fund backed by Jeff Bezos</a> gives you instant access to a diversified portfolio of rental properties, and you only need $100 to get started.</li>
</ul>

CMCT

ILPT

NLOP

Office Properties' Dividend Gets Whacked: Isolated Case Or The Start of A Trend?

RBC Capital analyst Brad Heffern maintains W.P. Carey (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WPC#NYSE">WPC</a>) with a Outperform and raises the price target from $66 to $68.

RBC Capital Maintains Outperform on W.P. Carey, Raises Price Target to $68

Asset Sales

W. P. Carey Announced The Sale Of A Portfolio Of 70 Office Properties Net Leased To The State Of Andalusia For About $359M

Raymond James analyst RJ Milligan maintains W.P. Carey (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WPC#NYSE">WPC</a>) with a Outperform and raises the price target from $63 to $68.

Raymond James Maintains Outperform on W.P. Carey, Raises Price Target to $68

W. P. Carey: Office Market Exit Creates Growth Potential

Kingdom Capital Advisors Q1 2024 Investor Letter

8 REITs increase dividend payouts in March, says report

In a report released today, Brendan Lynch from Barclays maintained a Hold rating on W. P. Carey Inc. (WPC – Research Report), with a price target o...

Barclays Remains a Hold on W. P. Carey Inc. (WPC)

What Investors Need To Know About Dividend Cuts

A $1.5 Million Inflation-Resistant Portfolio For Retiring With Dividends

REIT Earnings Preview: Delay And Pray

REIT Rally 2.0: Opportunity Awaits For Investment In High-Quality Gems

My Biggest REIT Wins And Lessons

A Hawkish Pivot

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Press Releases

W. P. Carey Announces Completion of State of Andalusia Office Portfolio Sale for $359 Million

W. P. Carey to Release Fourth Quarter and Full Year 2023 Financial Results on Friday, February 9, 2024

W. P. Carey Announces Tax Treatment of 2023 Dividends

W. P. Carey Announces Fourth Quarter and Full Year 2023 Financial Results

W. P. Carey Increases Quarterly Dividend to $0.865 per Share

W. P. Carey Appoints Rhonda Gass to Board of Directors

W. P. Carey Releases 2023 CEO Letter

W. P. Carey Selected as 2024 Green Lease Leader

W. P. Carey to Release First Quarter 2024 Financial Results on Tuesday, April 30, 2024